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T&W Metro facing "budget crisis"

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Tetchytyke

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The Tyne and Wear Metro is facing a multimillion-pound budget crisis, latest figures have shown.

Operator Nexus said the cash shortfall for the current year has jumped from £700,000 to £4.1m.

It has been blamed on problems including a slump in fare revenue, inflation and "catastrophic overhead line failures".

Bosses have warned services may have to be cut if no solution to its "unsustainable" finances can be found.

The figures were provided in a report for the North East Joint Transport Committee, the Local Democracy Reporting Service said.

It showed revenue raised from Metro fares dropped by £1.2m and an overhead line failure in May cost £500,000.

A pay rise for staff was £300,000 higher than expected, contract inflation costs were £700,000, and £1.1m was spent developing bids for the government's Transforming Cities Fund.

'Political discussion'
Other financial pressures included falls in the levy paid to the system by local council, which has been cut eight times since 2010.

Councillor Martin Gannon, the committee's chair and leader of Gateshead Council, warned that it was "unsustainable" for Nexus to rely on diminishing cash reserves and called for a "very high level political discussion" between regional leaders and the Department for Transport to solve the crisis.

John Fenwick, Nexus' director of finance and resources, said surpluses generated in recent years had been funnelled into £16m of available reserves to "accommodate some of the pressures we now see".

The organisation was also negotiating with the government for an increase in grant funding.

But he added: "Reserves are sufficient to protect services in what remains of this year and next year - there is probably a question of how sustainable that is thereafter."

https://www.bbc.co.uk/news/uk-england-tyne-50166083

Oh here we go, the shambolic management of Metro over the last five years is all because of those nasty Tories. It's not at all due to incompetent managers managing incompetently, perish the thought.

I'm amazed revenue isn't lower. Commuters can't trust it- I abandoned Metro and bought a car 18 months ago- and leisure passengers are all OAPs on their freebie gold cards. Those of us at the Coast have had repeated above-inflation fare rises for a worse service- massive timetable cuts but still no reliability- whilst Nexus pile huge discounts onto university students in Newcastle. No wonder people who actually have to pay for the service are deserting it.

The crisis is all because Nexus couldn't run a bath.
 
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Bletchleyite

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Those in favour of devolution might well want to read this. If a TOC is incompetent and loses a load of money, national Government is big enough to deal with it. Local Government less so.
 

TWTrains

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Metro has been crumbling slowly for years. The age of the fleet and the insufficient timetable is one of the key factors in this.
 

Paul_10

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Whilst I don't live in the area anymore so my use on the metro is quite limited, it is all rather depressing hearing all this but I think the problems started since 2010 when the system got privatised by DB.

Of course not everything is down to them but there was that period around 2015 when reliability was really poor especially with the metrocars.

Metrocar reliability is now somewhat better however behind the scenes issues with driver resources is hampering the service the public sees and sadly people are losing faith. With go ahead in particular investing heavily in new buses with features such as WiFi then it is driving passengers away hence lower income.

I disagree prices are cheap also, most passengers journies are no longer than 20 mins and some are less than that so no doubt the prices are driving people away but fares need to be high just to try and keep up with maintenance costs etc.

Also this new fleet is sounding more and more like it will be the saviour for the system but they won't be in passenger service until at least 2022(with the first train delivered at the back end of 2021) so still a long time before things will change in that regard
 

option

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£1.1m was spent developing bids for the government's Transforming Cities Fund.

but that's not Metro surely? That's a Nexus or local authorities decision & spending.
 

jkkne

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Hardly surprising.

Get a metro which is likely to be delayed, closed for maintenance, possibly cancelled, old, unreliable and overcrowded or get a bus which takes slightly longer but is reliable, new, has WiFi, isn’t overcrowded and has a driver. It appears many are taking that option or returning to their cars.

We’ve got Haymarket, one of the major stations on the network constantly forced into exit only because the escalators keep breaking down, a coastal line that is seemingly never open on weekends, increased anti social behaviour, dirty and unsafe stations, unchallenged fare evasion, platform displays that don’t work, ticket machines that operate slower than Barbara in a 1940s CoOp.

Add in Nexus incompetent management and it’s a recipe for utter disaster. Nexus make Arriva look like the model of brilliance
 

Paul_10

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Hardly surprising.

Get a metro which is likely to be delayed, closed for maintenance, possibly cancelled, old, unreliable and overcrowded or get a bus which takes slightly longer but is reliable, new, has WiFi, isn’t overcrowded and has a driver. It appears many are taking that option or returning to their cars.

We’ve got Haymarket, one of the major stations on the network constantly forced into exit only because the escalators keep breaking down, a coastal line that is seemingly never open on weekends, increased anti social behaviour, dirty and unsafe stations, unchallenged fare evasion, platform displays that don’t work, ticket machines that operate slower than Barbara in a 1940s CoOp.

Add in Nexus incompetent management and it’s a recipe for utter disaster. Nexus make Arriva look like the model of brilliance

Some things like anti social behaviour have always been there and I very much doubt there has been any real increases in relation to this, you can't really stop it either, you can't patrol every part of the system when there is no money or resources so it's sadly part and parcel of public transport and many passengers won't experience too serious incidents of anti social behaviour.

I agree with other things like the passenger displays, never Nexus strong point as the old system often had trains overtaking and then changing again but it's even worse now, usually during the peak times when the system can get confused with the larger amount of trains.

Buses in the region has definately improved significantly in the last 10 or so years and its really putting the metro to shame, the refurbishment the fleet had looks cheap, no one thought about installing WiFi into the metrocars during the refurbishment.

Oh and even better still, the new fleet will have longitudinal seating which means less seats during off peak times! In fairness the passengers voted for that but I do hope it will be a mixture of bay and longitudinal seating.
 

DanNCL

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I've spoken directly to Nexus about many of the issues on Metro many times over the course of the last 18 months and really get a can't be bothered impression from them - they really seem to act as if they think they can sit by and do nothing other than waffle on about extensions to Ashington and Washington (that won't happen for ages if they even happen at all) for a few years whilst they wait for new trains, and then when the new trains finally replace the old ones all the problems will magically go away. This, obviously, couldn't be further from the reality of it, and to be honest it doesn't surprise me that Nexus seem to be living in cloud cuckoo land rather than the real world.

I've asked them about why they've not fitted wifi to the current trains, why they're not making much of an effort over reliability, and why they no longer care about the presentation of the trains (as it's becoming increasingly common to see units if not covered in graffiti very scruffy from where graffiti has simply been covered over rather than properly removed) and got the same answer to all of them - they don't want to spend a penny more than essential for keeping a basic service running on the old fleet.

They're happy to spend money on advertising and vanity projects such as Project Orpheus (I know that was more than a decade ago now but they still do spend money on vanity projects), but won't spend money where they actually should be spending it - on keeping the passengers and staff happy, and so it's no surprise they're not in a good position financially when they don't make the right choices regarding finances. Nexus really are useless, and I really don't know how on earth Tobyn Hughes is still in a job.
 

Tetchytyke

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Some things like anti social behaviour have always been there and I very much doubt there has been any real increases in relation to this

It has always been there, and certain sections (Meadow Well, Tyne Dock) have always been rough. But it's getting worse again, you certainly didn't get people openly smoking drugs on the trains a few years ago.

Truthfully, I only ever really use Metro now if I'm going out on the lash in Newcastle. I'm clearly not alone. Bear in mind it's a five minute walk from my house to the station, and pretty much the same at the other end to work.

Some of it is general cuts to policing, but some isn't. Northumberland Park multi-storey is clearly no longer staffed; the local scrotes will set off the fire alarms as always, but now nobody turns them off for hours. I wouldn't leave my car there.

or get a bus which takes slightly longer but is reliable, new, has WiFi, isn’t overcrowded and has a driver.

The Silverlink roadworks finally finishing has made the 308 and 309 more attractive again, but I'm not seeing much of a shift to the bus. Judging by the traffic near me (near Cobalt), people are going back to cars. The multi-storey at Northumberland Park is also noticeably quieter.
 
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I used to live near Manors metro station and travel down to the coast in the evening for a drink with my mate. Manors is the haunt of the local charvers to avoid the manned stations in the city centre. In the end I stopped using it and caught a bus instead, there was bother almost every trip.Meadow Well is grim, makes Byker look like Darras Hall.
 

318266

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I sometimes go on holiday in Whitley Bay and most of the time, when I get to Newcastle, I go to Haymarket Bus Station and catch either the 308/309, though I do prefer the 309 I just catch whichever comes first. The Metro, on the few times I've used it, it usually worked, but once I had to catch the bus because of overrun bridge work in Cullercoats.
 

Graeme

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If there's a financial crisis at Metro, it's just been deepened by the overheads coming down at Hebburn yesterday - services were initially suspended from Monument towards Brockley Whins and later from just Pelaw to South Shields. "Normal service" resumed this morning.
 

ModernRailways

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One of the RRVs also damaged the points so they needed repairing too. We didn't get the train that brought them down back to the depot till 5am.
 

transmanche

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They could always raise fares....
Metro fares are already uncompetitive compared with buses for many journeys. I think this was exacerbated when the original zones were scrapped and replaced with the current three-zone structure.

For example: a cash single from Newcastle City Centre to Regent Centre is now £2.80. For about the same price, you can get a return on Arriva buses.
 

Tetchytyke

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They could always raise fares....

Given passenger numbers have eropped dramatically, I'm not sure how that would work? Metro fares are already high- from mine it's £4.20 return to go two stops, thanks to the way the zones work.
 

MetroCar4058

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Given passenger numbers have eropped dramatically, I'm not sure how that would work? Metro fares are already high- from mine it's £4.20 return to go two stops, thanks to the way the zones work.

Most systems have a short journey (3 stop) ticket. I’m not sure why fares and revenue have never gone for it.
 

Kite159

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Most systems have a short journey (3 stop) ticket. I’m not sure why fares and revenue have never gone for it.

Because you can pretty much guarantee that "3 stop" ticket will be the most popular one sold from the city centre for some to bypass the barriers when travelling further afield.
 

MetroCar4058

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Because you can pretty much guarantee that "3 stop" ticket will be the most popular one sold from the city centre for some to bypass the barriers when travelling further afield.

So? People do that with A zone single tickets now. Could be the same price or very little difference.

Also that feeds into your fares and revenue policy.
 

Tetchytyke

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So it will be worse if the new ticket gets introduced.

Depends how you bring it in. Make it a POP-only product and you won't have any fare evasion issues at all.

And you might even gain revenue- when it's a ridiculous £4.20 return to go two miles from mine to Monkseaton, it encourages fare evasion where a more sensibly-priced product would be bought.

I’m not sure why fares and revenue have never gone for

Because Nexus are staffed by people who wouldn't know customer service and innovation if it took them out to dinner.

Nexus are the poster-boys for everything that's wrong with local government.
 

transmanche

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So it will be worse if the new ticket gets introduced.
I really can't see how you came to that conclusion.

People who are going to cheat will buy the single-zone ticket anyway. Setting the fare for some short journeys which cross zone-boundaries to be the same as a single-zone ticket isn't going to change that.
 

Kite159

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I really can't see how you came to that conclusion.

People who are going to cheat will buy the single-zone ticket anyway. Setting the fare for some short journeys which cross zone-boundaries to be the same as a single-zone ticket isn't going to change that.

For some chancers who currently travel from one of the central station with barriers will buy the cheapest ticket in order to bypass the barriers then carry on to a station without barriers, if you introduce a cheaper ticket they will switch to the cheaper ticket so they can get away with paying less.
 

transmanche

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For some chancers who currently travel from one of the central station with barriers will buy the cheapest ticket in order to bypass the barriers then carry on to a station without barriers, if you introduce a cheaper ticket they will switch to the cheaper ticket so they can get away with paying less.
No one's suggested that Nexus create a ticket that's cheaper than a single-zone fare. Merely that short journeys across zone boundaries should be charged the single-zone fare.
 
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